In order to combat this deficit spending, taxes are increased to generate more revenue to pay off this spending. In response, consumers will spend less money and save more, thus causing a decrease in consumption and less money in the economy. Soon, there is a decrease in investment because products are not being sold. Prices drop, and the economy lowers into a recession.
1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) One financial planning skill that I find important to me is a personal budget. Personal budgeting is really important to me because I always want to make sure that I never spend more than I make.
This is important to me personally because purchasing items at low prices can help me to buy other items that I need. Financial planning can also help me to spend money responsibly. This is important to me because by spending money responsibly I'll only spend money on the things that I need instead of the things that I want. 2. List two examples of goods you have purchased in the past or may purchase in the future.
Assignment 6 (26 points) Assignment 6: Insurance and Consumer Protection Instructions Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment.
(3-6 sentences. 2.0 points) Inflation can be a problem with storing money to store value, or a plus. When inflation goes up, the value of a dollar goes down and you now need more money to pay for the item you could have bought before inflation went up. But if inflation goes down your dollar is worth much more! 5.
This is important to me because I tend to spend money when I get it, financial planning skills can help me stop doing that. They can also help you create a budget. This is also important to me so I know what I have that I can spend and cannot go over that set amount. 2. List two examples of goods you have purchased in the past or may purchase in the future.
The effects of a fall in consumer wealth will be to reduce confidence and consumer spending; equity withdrawal will slow down sharply – this has been a significant contributor to increasing AD in UK). Therefore, falling house prices will cause a fall in AD and is likely to cause a recession. This occurred in 1991 and 1992 when falling house prices caused a recession 2. Reduce House Price Volatility To prevent a house price crash, in the future, the government needs to reduce house price volatility and speculation. For example, the government could try these policies Encourage Fixed Rate Mortgages – Makes mortgages less sensitive to interest rate changes.
| | | Assignment 4 Instructions Save the file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment 1R for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment's questions. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment.
How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points) If inflation is increasing, which means the value of money is going down; It may make sense to invest the money in investments that are likely to increase in value. 5. Imagine that you are considering moving to a new country and looking for a job there, but you first want to make sure the country has a strong economy.